Press release

Tue, May 21st 2013 11:45 pm

National
Mortgage Settlement Monitor Joseph A. Smith Jr. today released anupdate
on the consumer relief activities of the five banks that are parties
to the National Mortgage Settlement, as reported by the banks through
March 31, 2013. According to the report, thousands of New York
consumers have received more than $1.92 billion in relief under the
settlement in the first year.

"New
York homeowners have received almost $2 billion in financial relief
under the National Mortgage Settlement - far more than the federal
government projected would flow to our state a year ago," said
Attorney General Eric T.
Schneiderman. "While we are pleased that the benefits to
homeowners - including reduced debt, lower mortgage payments, and
averted foreclosures - have been substantial, our work is not
finished. My office will continue to monitor the banks' compliance
with the settlement."

In
addition to the hundreds of millions of dollars in relief from
lenders reflected in today's report, Schneiderman secured more than
$130 million in hard dollars for New Yorkers as part of the
settlement. Of this amount, Schneiderman launched the Homeowner
Protection Program, a $60 million commitment over three years to
fund housing counseling and legal services for struggling New York
homeowners. Throughout New York state, 34 legal services
organizations and 59 housing counseling agencies will receive more
than $16.1 million this year to provide free foreclosure prevention
services. An additional $3.9 million has been allocated for training,
technical assistance, and other support services to assist homeowners
in foreclosure. In part because of the advocacy of HOPP-funded
housing counselors and legal services providers, more than 4,300 New
York homeowners have completed, or have active trial modifications
for approximately $540 million worth first mortgage principal
reduction.

In
January, Schneiderman was appointed by President Obama to co-chair
the Residential Mortgage-Backed Securities Working Group. This joint
investigation brings together the Department of Justice, HUD, the
Securities and Exchange Commission, the Consumer Financial Protection
Bureau, several state law enforcement officials, and other federal
agencies to investigate those responsible for misconduct contributing
to the financial crisis through the pooling and sale of residential
mortgage-backed securities. It builds upon ongoing state and federal
investigations, while also launching new ones.